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Swarovski® Corporate Restructuring (and what it means for you)

Swarovski® Corporate Restructuring (and what it means for you)

Posted by Rhinestones Unlimited on Nov 18th 2020

NOTICE

From our Swarovski Representative: "Swarovski has been successfully operating for over 125 years. To ensure that we remain a sustainable and relevant business in this rapidly evolving retail and manufacturing environment, we have recently embarked on an extensive transformation program. Over the past months Swarovski has merged its B2B and B2C businesses, reviewing all fields of activity worldwide to ensure that they are in line with the new economic realities. We still feel high appreciation for all the creative art works and are grateful for the passion that our customers show for our crystals, but economic realities required difficult decisions that had to be made.

As a result of this Swarovski has decided to re-align its B2B business model and will thus focus in the future on fewer segments in the luxury, accessories, fashion & selective niches. In the course of the year 2021 Swarovski will also streamline its global distribution strategy and withdraw from offering Swarovski® components that are tailored for the DIY and nails retail segment. Therefore we will unfortunately not be able to serve you with Swarovski® products in the future."

From Swarovski C.E.O. Robert Buchbauer: “After years of exuberant expansion, Swarovski needs to refocus and learn that less is more. That means exiting the low-margin wholesale business where cheaper competition from Egypt or China has dented profit.” (Mathias/Gretler 2020)

Resource: Wabl, Matthias and Gretler, Corrinne (2020, August 20) Cracks in the Crystal Kingdom. Bloomberg.

https://www.bloomberg.com/news/articles/2020-08-21/cracks-in-the-crystal-kingdom

We understand that our many customers are passionate Swarovski brand enthusiasts and may find this notice to be tough leaving you questioning how you will move forward with your own products and branding. Please be assured that at Rhinestones Unlimited we are committed to servicing your rhinestone, nail art and costume trimming needs and have taken necessary efforts to make sure you have options this season and throughout 2021. We have a long history with Swarovski and will continue to stock and sell Swarovski crystals when the inventory is available, and while we can still sell their products.

Angela Peery, President & C.E.O, Rhinestones Unlimited, Inc.


What this means for you, our loyal customers in dance, performing arts, costuming, do-it-yourself crafts, and nail art, is this:

  • As of November 2021, there will no longer be newly produced Swarovski crystal components (i.e. rhinestones, trims and Crystalpixie) available for our customers (dance, costuming, DIY and nail art customers) to purchase.  Swarovski components will still be produced for high end luxury brands to use in their manufacturing.  There will still be some older stock available through Swarovski Authorized Resellers. 
  • It is time for you to consider a new crystal brand for your products and work on your new branding- we are here to help!
  • We all have 6-12 months to make the transition but because of Swarovski’s stock shortages caused by their reduced workforce and factory production you may want to consider making the change sooner than later. 

Other Crystal Brands

As the leader in rhinestones, trims and accessories we are constantly working to improve our product offering and bring you the best products available. Please consider our other rhinestone brands as replacement of your Swarovski crystals when stock availability runs low and you will be forced to choose a new brand. 

While we have always prided ourselves on having the largest stock and assortment of Swarovski flatback and hotfix rhinestones for our customers, we are being forced to begin a quick transitioning of our inventory. Because we have substantial data on the products you want and need, we have been diligently working to build stock of Swarovski but also have partnered with Preciosa® to bring in their comparable top line product, Maxima crystal. We have transitioned our Preciosa Viva12 to sell under our own brand, LUX Austrian Crystal™ (re-branding to come in 2021!) plus we have found a new and improved manufacturer for our Priceless Crystal™ while drastically expanded our color offering of these very affordable rhinestones. Preferred Business Customers, please request a sample to compare the quality for yourself.

Preciosa® Maxima

The name Preciosa is renowned as a statement of crystal quality and innovation. The unmatched artistry and craftsmanship from this region has been celebrated the world over for centuries. Rhinestones Unlimited is proud to offer Preciosa Maxima flat back rhinestones starting in late 2020. The transition of our inventory from Swarovski to Preciosa Maxima will happen throughout 2021. The Maxima price is less than Swarovski but, in our opinion, equal in quality. Let us know your thoughts!

LUX Austrian Crystal™

LUX Austrian Crystal is a trademarked premium brand from Rhinestones Unlimited, Inc. Each package of LUX Austrian Crystals is superior quality crystal from one of the two world leaders in crystal manufacturers from Austria and the Czech Republic. The extensive color selection and quality of our LUX Austrian Crystal rhinestones is proudly brought to you because of our years of distribution for these two top crystal producers. Check out the amazing color selection newly expanded to 99 colors, and top quality while considering LUX Austrian Crystal for your sparkle this year!

Priceless Crystal™

Priceless Crystal is a trademarked premium brand from Rhinestones Unlimited, Inc. We guarantee these rhinestones to be the most cost-effective crystal on the market at a fraction of the price. Our expert staff hand selects the most beautiful quality and colors to be part of our Priceless Crystal line of rhinestones. Throughout our 22 years in business we have had four manufacturer changes to make sure that our Priceless Crystal rhinestones are the best available. This season we are proud to offer a vast new color selection of 80+ colors in the most popular sizes of 12ss, 20ss and 30ss.  Watch for this new expanded color selection launching November 2020.  With the amazing savings and little to no visible quality difference, we encourage you to consider Priceless Crystals!

Inventory and Transition

We at Rhinestones Unlimited are working diligently to make this as seamless as a transition as possible for you, our loyal customers. We do ask for your patience and flexibility when faced with the inevitable stock outages and backorders. This is what you can expect to see during this time of transition:

  • An expanded LUX Austrian Crystal product offering which now included crystals from Austria and the Czech Republic
  • Clearance offerings of Preciosa Viva12 rhinestones
  • Discontinued and limited stock of Swarovski products
  • Ongoing and a reliable supply of most top selling Swarovski products through February 2021
  • Updates on product descriptions if we are experiencing inventory issues
  • Preciosa Maxima hot fix and non-hot fix rhinestones will be arriving and eventually replacing our Swarovski stock during this transition

Thank-you for your business and we look forward to helping you sparkle brighter than ever in 2021! Please let us know if you have questions, concerns or need clarification- we are here to help!


Resources:

1. Wabl, Matthias and Gretler, Corrinne (2020, August 20) Cracks in the Crystal Kingdom. Bloomberg. https://www.bloomberg.com/news/articles/2020-08-21/cracks-in-the-crystal-kingdom

2. https://ww.fashionnetwork.com/news/Swarovski-undertakes-radical-restructuring-effort,1257094.html